India sugar drops on weak demand, lack of exports

NEW DELHI, Jan 28 (Reuters) - Indian sugar futures fell on
Monday due to weak demand, mounting supplies from mills and poor
export prospects due to lower world prices.

* Mills in India are expected to churn out 24.3 million
tonnes of sugar in 2012/13, a leading industry body last week
said, marginally raising its previous forecast.

* An output of more than 24 million tonnes will be lower
than the 26 million tonnes produced in the previous year, but
higher than the expected local consumption of about 22 million
tonnes.

* India's sugar output rose 3 percent to 10.8 million tonnes
in the first three-and-a-half months of the season beginning
October.

* India's export volumes have been too tiny in the season
beginning October due to lower global prices but imports have
surged in a surplus year.

* India has contracted to import 920,000 tonnes of raw sugar
since the season began in October, turning into a net importer
for the first time in two years despite surplus stocks at home,
a senior industry official said.

* As of 1124 GMT, the key February sugar contract on
India's National Commodity and Derivatives Exchange was down
0.13 percent at 3,191 rupees ($59.19) per 100 kg.

* Sugar edged down to 3,250 rupees per 100 kg from 3,251.35
in the Kolhapur spot market in the top-producing Maharashtra
state.

* "Bulk buyers are not stocking up since they know that
there's plenty of sugar in the market and that's the main reason
behind poor demand," said Mukesh Kuvadia, secretary of the
Bombay Sugar Merchants Association.

* Demand for the sweetener from bulk consumers like cool
drink and ice cream makers usually drops in India during winter.
(Reporting by Mayank Bhardwaj; Editing by G.Ram Mohan)